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Wholesale inflation jumps 6.5% from last year — biggest increase since 2022: ‘No silver lining’
US producer prices rose 6.5% in the year to October, their largest annual increase since November 2022. The figures add to evidence that inflation is spreading beyond energy and may keep pressure on the Federal Reserve to raise interest rates.
Monthly producer price inflation was 0.3%, below economists’ 0.4% forecast, following an upwardly revised 1.4% rise in September. Food prices increased 1.3%, core goods prices rose 0.5%, and services prices rose 0.2%; diesel was down 7.9% over the month but up 115.2% year on year. Economists expected core PCE inflation, a measure watched by the Fed, to reach 3.2% annually in October, while markets weighed the scale of a possible December rate increase.
In short
- Annual producer inflation reached 6.5%, its highest since November 2022.
- Food and core goods prices rose, despite a monthly reading below forecasts.
- The figures may add pressure for further Federal Reserve rate rises.
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